GlaxoSmithKline has dropped plans to sell part of its HIV drugs unit and promised to hold its dividend steady for the next three years as the struggling UK pharmaceuticals group set out its strategy to revive growth.
The u-turn on a proposed multibillion-pound initial public offering of the ViiV Healthcare unit was the biggest surprise in a closely-watched presentation by Sir Andrew Witty, chief executive, aimed at shoring up investor confidence in the company and his leadership.
Sir Andrew floated the idea of a flotation for ViiV last year as a way to unlock value for GSK shareholders in what would have been among the biggest UK IPOs on record. He said on Wednesday it made more sense to keep the business because its growth prospects were stronger than anticipated.